The Kano Attorney-General says the suspects are innocent and directed the Chief magistrate to discharge them.
The suspects - Dauda Ahmed, Abdulmumeen Mustafa, Zubairu Abubakar, Abdullahi Abubakar and Musa Abdullahi - were charged with a four-count charge bordering on inciting disturbance, culpable homicide, joint act and mischief.
They were set free on Thursday, November 3.
It was gathered that the chief magistrate, Muhammad Jibril, discharged the five suspects and terminated the case in line with the directive of the attorney-general of Kano state.
The principal state counsel, Rabiu Yusuf, who represented the attorney-general of Kano state, earlier told the court that the suspects are innocent and have no case to answer.
He said: "We received the case diary from the police on June 8.
"Having gone through the case diary, the attorney- general of Kano state evaluated the facts in accordance with sections 130 and 150 of the criminal procedure code.
"The legal advice presented to the court, dated June 24, states that there is no case to answer as the suspects are all innocent and orders the court to discharge all the suspects."
Agbahime, an indigene of Imo state, was killed in Kofar Wambai Market in Kano on June 2, 2016, over alleged blasphemy.
The victim was 74 years old.